The Canberra suburbs where unit rents have increased and decreased the most

Unit rents in Canberra’s inner-city have held stable in recent months, despite Canberra recently losing its title as the most expensive city in which to rent a house. 

The Domains Rent Report, released in July, showed Canberra median house rents fell by 2.2 per cent over the June quarter, while the unit market held strong with a zero percentage change from the same time last year.

Little Bird Properties director Heidi Russell said that although these findings came as no surprise, she had seen some areas in the nation’s capital suffer more than others. 

“We have been feeling a bit of a slow on the market for 12 months, and these statistics are not surprising,” she said. 

“We are continuing to see decent rents in the inner suburbs but overall, and for houses in particular, prices have dropped.”

The report found that units in Red Hill recorded the biggest increase in rent at 19 per cent, along with Lyneham at 11.8 per cent. O’Connor was sitting at an 11.1 per cent increase and Narrabundah was close behind on 9.1 per cent. 

Suburbs in lower density areas experienced smaller rises – or falls – such as Lyons and Dickson at -4.4 per cent and -1.8 per cent respectively. 

Luton Properties Weston Creek and Molonglo Valley director Tim Burke said that unit rents tended to be very unpredictable, but that the inner-city suburbs were always popular with the demographics that typically rent. 

“We typically see singles and couples looking to rent units, although you might see smaller families with kids here and there,” he said. 

“The popularity of rentals in general revolves around a few things, transport being one of them and more high-density areas.

“If you’re a couple or single you’re going for ease of living, especially in high cosmopolitan areas with restaurants, cafes, bars and good shopping.”

Burke added that the unpredictability of rentals meant that prices can change drastically year-on-year, depending on supply and demand, or who you have turning up to the open home on the day. 

Interestingly, median house rents are following the same trends in similar suburbs, however they were generally larger decreases than that for unit rents. 

“While units are holding steady, houses are taking a bigger hit in the same areas and we are having to decrease some rents by around $50 to $60 per week on what was paid this time last year,” Russell says.

“We had a four-bedroom house in Gordon rented recently and the previous tenant was paying $700 a week, but we re-rented it for $650 after six weeks on the market.”

Overall, she said it can be a hard time for those who have invested. 

“I do feel for home owners at the moment, with increasing interest rates, bills, cost of living and lower rents.”